Khaleej Times, Sat, Jul 27, 2024 | Muharram 21, 1446
UAE: Most affordable areas to rent in Abu Dhabi; rates start at Dh23,000
Emirates:
The residential rental market in Abu Dhabi is getting hotter this summer with a
significant surge in prices across affordable and luxury apartments and villas
recorded in the first six months of this year compared to the second half of
2023.
As per an analysis report by a property portal, strong demand has led to rental
prices for apartments in popular luxury neighbourhoods like Saadiyat Island and
Al Raha Beach to see double-digit growth, whereas prices for affordable flats in
expat hubs of Tourist Club Area and Al Muroor have also climbed.
“If we look at the property advertising trends in H1 2024 for the rental
property market report in Abu Dhabi, we can clearly see that demand is quite
high, with most areas experiencing increases,” Fibha Ahmed, vice president of
property sales, Bayut & dubizzle, told Khaleej Times.
“The landscape is definitely landlord friendly, with luxury segments seeing the
most substantial hikes, with apartment rents rising over 20 per cent and villa
rents approximately 12 per cent," Fibha added.
According to Bayut’s report, Khalifa City and Al Khalidiyah have been prominent
choices for affordable apartment rentals. At the same time, Mohammed Bin Zayed
City and Khalifa City have emerged as the top searched areas for renting
affordable villas.
“Areas like Mohammed Bin Zayed City and Khalifa City have become key focus areas
for tenants seeking budget-friendly homes, while those in search of luxury
residences preferred Yas Island and Al Raha Gardens. In the affordable apartment
segment, Khalifa City and Al Khalidiyah attracted the most interest, whereas Al
Reem Island and Al Raha Beach were the top choices for elevated apartment
rentals,” Fibha noted.
Affordable apartments
Prices for affordable apartments in popular areas have witnessed a rise of up to
8 per cent compared to the second half of 2023.
Here is the average yearly rents and price hikes for a studio: Al Muroor
(Dh32,000 at 7.42 per cent), Khalifa City (Dh30,000 at 3.8 per cent), Al
Khalidiyah (Dh29,000 at 3.2 per cent), and Tourist Club Area (Dh23,000 at 1.21
per cent).
Rates for sought-after one-bedroom and two-bedroom flats have climbed by up to 8
per cent in these areas. The rents and percentage rise are accordingly: Khalifa
City (Dh44,000 at 4.97 per cent and Dh69,000 at 8.78 per cent), Al Khalidiyah
(Dh41,000 at 3 per cent and Dh54,000 at 4.61 per cent), and Al Muroor (Dh56,000
at 4.23 per cent and Dh71,000 at 8.46 per cent). No change was recorded in the
Tourist Club Area, where a one-bedroom remained at Dh34,000 and a two-bedroom
flat at Dh47,000.
Affordable villas
Average yearly rents have surged more than 3 per cent in top areas for
affordable villas, especially three- and five-bedroom facilities. Meanwhile,
rents in four-bedroom villas have declined in some areas.
Changes in rents for three-bedroom villas are Al Reef (Dh108,000 at 3.88 per
cent), Mohammed Bin Zayed City (Dh104,000 at 3.65 per cent), Khalifa City
(Dh161,000 at 3.27 per cent), whereas Shakhbout City (Dh117,000) remained
unchanged. Prices for five-bedroom villas were between Dh150,000 and Dh174,000
in these four areas.
However, rents of four-bedroom villas rose 6.49 per cent in Khalifa City to
Dh167,000, whereas it dipped 1.07 per cent to Dh134,000 in Shakhbout City
and 0.6 per cent to Dh136,000 in Al Reef.
Luxury apartments
Demand for one-bedroom luxury flats has resulted in a huge uptick in rents
at Saadiyat Island (Dh97,000 up 20.2 per cent), Al Raha Beach (Dh70,000 at
11.2 per cent), and Yas Island (Dh71,000 at 9.21 per cent). The cheapest
one-bedroom in the luxury segment is on Al Reem Island (Dh68,000 at 9.13 per
cent). There was less activity in price points in these areas for
two-bedroom and three-bedroom flats. The costliest is Saadiyat Island where
a two-bedroom remained unchanged at Dh155,000. A three-bedroom is available
for Dh224,000 at a 1.99 per cent hike compared to the second half of last
year. Rates of a two-bedroom flat in Al Raha Beach were at Dh110,000 up 10.6
per cent, and Reem Island (Dh97,000 at 6.66 per cent).
Luxury villas
Among the top areas for renting luxury villas, prices for a four-bedroom
facility dropped by 6.77 per cent to Dh317,000 on Yas Island, but rents
climbed 12 per cent to reach Dh259,000 in Al Bateen. Other areas, including
Al Raha Gardens (Dh171,000 at 1.47 per cent) and Al Mushrif (Dh161,000 at
0.16 per cent) saw little activity. Rents of five-bedroom high-end villas
climbed 8.2 per cent to Dh224,000 in Al Bateen, 4.69 per cent to Dh360,000
on Yas Island, 2.59 per cent to Dh234,000 at Al Raha Gardens, and dropped
0.77 per cent to Dh198,000 in Al Mushrif area.